Pemberton, the snack food division of Candler Enterprises, acquired Krispy Natural crackers in 2008 to enter the salty snack market. However, Krispy Natural initially underperformed due to being a regional brand with limited flavors and product lines. To relaunch Krispy Natural, Pemberton developed new product strategies, expanded flavors and lines. It also implemented revised marketing, distribution, pricing, and promotion strategies. The relaunch of Krispy Natural was highly successful, gaining an 18% market share and becoming a household name in the US.

1. LAUNCHING KRISPY NATURAL -
CRACKING THE PRODUCT MANAGEMENT CODE
[A HARVARD BUSINESS REVIEW CASE]

2. OBJECTIVES
PEMBERTON ---- INTRODUCTION
KEY STRATEGIC PRIORITIES
U.S. CRACKER INDUSTRY OVERVIEW
KRISPY NATURAL’S UNDERPERFORMANCE
RELAUNCHING KRISPY NATURAL ---- PRODUCT STRATEGY
MARKETING STRATEGY
DISTRIBUTION
PRICING
PROMOTION PLANNING
RESULT
CONCLUSION
DISCLAIMER

3. Candler
[ With a net worth
of approx.
$ 18 billion]
BEVERAGE
INDUSTRY
PET CAREPEMBERTON
QUICK
SERVICE
RESTAURANTS

4. AN INTRODUCTION TO PEMBERTON
Pemberton is the snack food division of Candler
Enterprises .
Pemberton is a market leader in the US snack market, in
the field of cookies, home styled muffins, and other bakery
snacks, and doughnuts.
Pemberton has a sales revenue of $5 billion dollars which
accounts to around 28% of total sales of Candler
Enterprises.
Pemberton uses the procedure of DSD [Direct Store
Delivery] to deliver products from distribution centres to
retail stores.

5. WHAT WERE THE KEY
STRATEGIC PRIORITIES
OF PEMBERTON ?

6. Building a collection of attractive
and durable brands.
Harnessing marketing, sales and
the DSD system to increase its
brand value.
Building and acquiring
capabilities in salty snack
categories.

8. PEMBERTON DECIDED TO VENTURE
INTO THE SALTY SNACK MARKET BY
ACQUIRING KRISPY NATURAL IN THE
YEAR 2008

10. THE U.S. CRACKER INDUSTRY
OVERVIEW ANSWERS THIS
QUESTION.

11. The growing cracker industry in the USA had a
net worth of $ 6.9 billion in the year 2011 .
The growth rate of the cracker industry
from 2008 to 2011 was 2.2% CAGR.
The sales were expected to increase by 6-7%
in the next few years.
The cracker industry was also driven by the
consumers’ demands for healthy products.
THE US CRACKER INDUSTRY OVERVIEW

12. 76%
9%
9%
6%
MINTEL STUDY RESULTS ON CRACKER CONSUMPTION IN
THE USA
ALL OTHERS
CRACKERS WITH FILLINGS
SALTINES
GRAHAM CRACKERS

14. UPON ITS LAUNCH IN
THE SNACKS INDUSTRY
IN THE YEAR 2008,
KRISPY NATURAL
UNDERPERFORMED !

16. SO WHY DID KRISPY
NATURAL FAIL IN ITS
FIRST ATTEMPT TO
ESTABLISH ITS HOLD IN
THE US SNACK MARKET?

17. IT WAS BECAUSE OF THREE REASONS..
 It was a regional brand.
 It had limited flavour
options.
The product line was
also limited.

19. PEMBERTON DECIDED TO
REALUNCH KRISPY NATURAL AS
THE CRACKER INDUSRTY
FUNDAMENTALS WERE
INDEED ALLURING!

20. PEMBERTON NOW RESORTED
TO DIFFERENT PRODUCT,
MARKETING, DISTRIBUTION
AND PRICING STRATEGIES TO
RELAUNCH KRISPY NATURAL.

30. Krispy Natural sought a
premium pricing strategy.
The crackers were priced at
155% above the category
average cost per ounce.
Krispy Natural had the same
visual price as that of its
competitors, but for a lesser
quantity.

39. UPON ITS RELAUNCH, KRISPY NATURAL
WAS SO SUCCESSFUL, THAT IT BECAME
A HOUSEHOLD NAME IN THE USA!!

40. Krispy Natural amassed an 18% market share in
Columbus as a new entrant in the salty snack market.
Its competitors, namely, Kraft foods, Kellogg's and
Pepperidge Farm lost a total of 10% of their market
share, despite a higher demand for their crackers
since 2010.
Forecasted national rollout sales figures in Columbus
and Southeast regions depict a PBT of 13% and sales
figures of $500 million, for the third year in a row.

42. DISCLAIMER
This presentation was made by AYASMITA KAR
during a summer internship program in
marketing with Prof. SAMEER MATHUR OF
IIM LUCKNOW.